GGP Inc. recently increased its stakes in three New York City properties that it jointly owns with real estate development, leasing and management firm Thor Equities.
In September 2017, the regional mall real estate investment trust acquired Thor's 49.9% interest in 218 West 57th St. based on a gross property valuation of $104.0 million. Upon acquisition, GGP increased its stake in the property to 99.9%, with Thor retaining a 0.1% stake.
GGP also recapitalized 530 Fifth Ave. and 685 Fifth Ave. based on gross property valuations of $334.0 million and $652.6 million, respectively, bringing the REIT's respective stakes in the assets to 90.23% and 97.03%. Thor kept a 9.77% stake in 530 Fifth Ave. and a 2.97% stake in 685 Fifth Ave.
The transactions were intended to help Thor pay off certain note receivables to GGP for the joint venture properties.
In June 2017, GGP received 7.3% of its joint venture partner's membership interests in the Miami Design District property, bringing its stake in the asset to 22.3%. The additional stake is meant to fully satisfy two promissory notes totaling $98.0 million that GGP entered into with Ashkenazy Holding Co. LLC in 2015.